Corporate cash conversion cycles

Assignment Help Financial Management

Reference no: EM131850180

1. During the Great Recession of 2008-2009, corporate cash conversion cycles typically increased in length by a significant amount. Why might this have occurred? Was it a good decision by corporate CFOs to allow this to happen? Explain.

2. In the economic environment of 2010-2014, the United States experienced a slow-growing economy with record low interest rates. In what ways does this type of economic environment diminish the importance of working capital management to the firm? In what ways is working capital management still important in this environment?

(Minimum of 150 words)

Reference no: EM131850180

Questions Cloud

Domestic capital budgeting-international capital budgeting : Explain the major differences between domestic capital budgeting and international capital budgeting?

Compute risk and expected return of the complete portfolios : Compute the risk and expected return of the complete portfolios. Compute the utility for all portfolios on the CAL for 2 different investors, say,

Accounting profit for each of the two years of operations : Calculate his accounting profit for each of the two years of operations. What are the consequences of the assumptions which proved to be incorrect?

What is your six-month percentage return on invested capital : Assume you hold your position for six months-then you sell all 100 of your shares for $51 per share. what is your 6-month percentage return on invested capital?

Corporate cash conversion cycles : During the Great Recession of 2008-2009, corporate cash conversion cycles typically increased in length by a significant amount.

The demands of stakeholder theory : Many managers are caught in a dilemma between a desire to maximize the value of their companies and the demands of "stakeholder theory"

Exchange rate between us dollars and euros : The exchange rate between US dollars and Euros is currently $1.18/€. What should the price of Euros be on a six-month forward contract?

The exchange rate between dollars and euros : The exchange rate between US dollars and Euros is currently $1.31/€.

Calculate required rate of return for portfolio consisting : calculate the required rate of return (%) for a portfolio consisting of 50% in ABC and 50% in XYZ.

User Account

All Pages